Investor Glossary-keynesian economicsInvestor Glossary-keynesian economicsInvestor Glossary-keynesian economicsInvestor Glossary-keynesian economicsInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Keynesian Economics

The HTML to link to this page
 

Keynesian economics, also called Keynesianism, is named for economist John Maynard Keynes. His 1936 book "General Theory of Employment, Interest, and Money" explored the principles of Keynesian economics. Unlike classical economics, which views the economic process as based on continuous improvements in potential output, Keynesian economics asserts the importance of the aggregate demand for goods as the driving factor, especially in downturns. Keynesian economics advocates government intervention, or demand-side management of the economy, to smooth out the bumps in business cycles and achieve full employment and stable prices. To stimulate the economy according to Keynesian economics, government intervention takes the form of government spending and tax breaks. To curb inflation, Keynesian economics believes government should cut spending and raise taxes.



Rate this Keynesian Economics definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: labor relations, 1031 exchange, wholly-owned subsidiary, margin rate, debt service coverage, phantom income, risk management, ex-dividend date, retained earnings, reverse mortgage, minority interest, required rate of return, FICO score, quality assurance, diluted share, open position, inflation, covered put, stock split, in escrow, cancelled check, real GDP, dividends payable, APR, liquidity ratio, FTSE, balance sheet, 1035 exchange, EBITDA, irrevocable trust, Key Rate Duration, ex-dividend, deferred tax, VIX, option premium, average price per share, implied volatility, current ratio, limit order, deferred revenue, per diem, Zero Cost Collar, annual return, 401a, stock market close, command economy, LIBOR, 144a, class C shares


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2015 Investor Glossary - All rights reserved - Terms of Use